ID: MRFR/A&D/5408-CR | December 2018 | Region: Global | 170 pages
Via the Internet of things (IoT), users can control physical objects by connecting them to the internet. Various operations in the aviation industry require IoT in order to ensure a superior traveling experience by passengers at the lowest fares. It is fair to say that aviation IoT is a rapidly growing market because the demand for IoT is increasing in various industries. Several companies and brands providing services to the aviation industry are rolling out the IoT incorporation in their operations and services. MRFR acknowledges that the value of global aviation IoT market will reach USD 25,134.6 million by 2023. This market is projected to record a massive CAGR of 16.34% between 2018 and 2023. Despite the vulnerability of IoT systems regarding cybersecurity, the popularity of aviation IoT is growing. Huge investments in terms of R&D can be the driving factors for the rapidly growing demand for the product. Airline services are trying to find IoT through various innovative ways.
This MRFR report offers an inclusive evaluation of the global aviation IoT market. The report cover market revenue forecast, until 2023. The market size presented in the report is based on certain parameters that are considered critical for the evaluation purpose. The complete evaluation is based on factual finding pertaining to production, sales, and consumption trends. The report also includes an intensive discourse on market dynamics such as drivers, restraints, market trends, and opportunities. The scope of the discourse also covers operations and services requiring IoT that are a part of the aviation industry. Both conventional and organic variants are listed in the report.
Historical market trends, market dynamics, forecast, market value by region as well as by segmentation, country-level analysis for each market segment, key player’s market share analysis and market factor analysis which covers supply chain and Porter’s five forces analysis of the market.
Companies Covered Amadeus IT Group SA, Cisco Systems Inc., Huawei Technologies Co. Ltd., SAP SESITA, and others.
Market Research Future’s research methods consist of both primary and secondary data evaluation that are carefully chosen to present the accurate findings in the study of a market. Primary methods include one-on-one interviews with industry professionals and key-level executives to gain a better understanding of the market. After this, secondary methods such as SECs, whitepapers, authenticated databases, reputed journals and others which acquired from publicly available sources are implemented. This is substantiated with detailed observations with regards to historical analysis, and current market positions offer a bird’s eye view of the market. Assessments and verification of the market are done via top-down and bottom-up approaches. All admissible facts are taken into account to offer clients, the ability to make well-informed decisions with confidence.
For the scope of the research, MRFR’s report offers a comprehensive segmental analysis of the global market for aviation IoT
By End Users
Frequently Asked Questions (FAQ) :
The global Aviation IoT market is projected to acquire USD 25.13 billion by 2023, expand at a moderate 16.34% CAGR in the review period.
The airline segment is expected to observe substantial demand over the review period.
The APAC region is expected to secure the highest CAGR.
The I.T. services segment is slated to expand as the fastest-growing segment.
A few eminent market players operating in the global Aviation IoT market are Amadeus IT Group SA, Huawei Technologies Co. Ltd., Cisco Systems Inc., SAP SESITA, and others.
Global Aviation IoT Market: Report Summary
Within the skyrocketing market of the aviation industry, aviation IoT is one of the fastest growing markets as per the analysis of Market Research Future (MRFR). According to the report, the global aviation IoT market is projected to reach the USD 25,134.6 million mark at a CAGR of 16.34% over the forecast period of 2018-2023.
Global aviation IoT market has witnessed substantial growth over the last few years due to the demand from various industries and organizations with regards to IoT incorporation in their operations and activities. Aviation IoT enables aviation companies to provide new services and features to passengers. The growing aviation industry and the popularity of IoT are inclined towards aviation IoT since they intend to enhance the overall experience of passengers. They are offering customized services to passengers. On the contrary, the vulnerability of IoT systems and the high cost of aviation IoT is likely to hamper the growth of the aviation IoT market. However, the investment in the R&D activities with regard to innovative solutions does ensure a positive impact on the market.
The global aviation IoT market has been segmented based on application, component, end user, and region. Airline application has been sub-segmented into fleet management, passenger experience enhancement, and others. Application-based segmentation segments this market into airline application, airport application, and air traffic management application processes. Sub-segmentation of airport application covers operations, passenger processing, and security. The sub-segmentation of air traffic management application comprises of flight turnaround optimization, runway management, and other processes. Fleet Management segment held the largest market share of 50.29% in 2017. Its market value was USD 3,591.0 million. During the forecast period, it has been estimated to grow at 16.06% CAGR.
By component, the market has been segmented into the market has been segmented into communication services, data center systems, devices, IT Services, and softwares. IT Services segment held the largest market share of 30.44% in 2017, and its market value was of USD 3,104.2 million. During the forecast period, it is likely to grow at 15.64% CAGR.
Based on end users, the market has been segmented into the airline, airport, and air traffic management. Airline segment held the largest market share of 70.02% in 2017. Its market value of USD 7,140.2 million. During the forecast period, it may grow at 16.23% CAGR.
North America, Europe, Asia Pacific, Latin America, and the Middle East & Africa (MEA) are the key markets of the global aviation IoT market.
The regional segmentation of the aviation IoT market covers regions such as Europe, Asia Pacific, North America, Latin America, and Middle East & Africa (MEA). North America is the largest regional market. In 2017, it held the largest market share of 30.89% whose market value was USD 3,150.5 million. During the forecast period, possibly, it may grow at a 15.61% CAGR. USA and Canada are the strongest economies in this region. During the forecast period, the aviation IoT market in North America is estimated to witness a CAGR of 15.61% during the forecast period. In this region, technological advancement and developed aviation sector contribute to the market growth.
In Europe, the market is growing due to strong economies such as France, Germany, Italy, the Netherlands, and the UK. Major factor aiding the growth in this region is technological advancement. The market growth for Europe is expected to register a 14.73% CAGR during the forecast period.
Asia Pacific is likely to rise as the fastest growing market during the forecast period at 18.40% CAGR due to rapid urbanization, rising technological advancement, the increasing demand for in-flight connectivity & connected electronic devices, the need to enhance the passenger experience, and rising investments in IoT solutions by airline operators & airports authorities. The major country-specific markets in this region are China, India, Japan, and South Korea, followed by the remaining countries of the Asia Pacific region.
In the MEA region, the market is primarily driven by the increasing passenger traffic, investment by airlines are investing in ways to reduce fuel consumption, superior in-flight connectivity networks and enhancing passenger experience during baggage & security screening. During the forecast period, the market in the MEA region is expected to grow at 16.50% CAGR. Significant country-specific markets in this region are Saudi Arabia and UAE, followed by the remaining countries of the MEA region.
In Latin America, the market growth has been estimated at 17.26% CAGR during the forecast period due to increasing investments and the rising demand for real-time data by airlines. The biggest market in this region is Brazil, followed by the remaining countries of Latin America.
Amadeus IT Group SA, Cisco Systems Inc., Huawei Technologies Co. Ltd., SAP SESITA, and others are the notable players operating in the global aviation IoT market.
Global Aviation IoT Market: Competitive Landscape
Cisco Systems, Inc., Huawei Technologies Co., Ltd, SAP SE, SITA, and Amadeus IT Group SA are the five major players operating in the global aviation IoT market. Cisco Systems, Inc. held the largest share among top five players with a share of 25.80%, in 2017, followed by Huawei Technologies Co., Ltd and SAP SE with respective shares of 13.62% and 10.68%. These companies continue to retain their strong global presence through expansions, mergers & acquisitions, partnerships & collaborations, and extensive product portfolio.
Cisco Systems, Inc. is the leading company in the aviation IoT market. The company focuses on expanding its market presence through the acquisition of specialized tech companies. The company investing in the research and development for producing technologically advance systems such as cloud computing and cloud security.
Huawei is focused on innovation to increase its product offerings in line with the latest technological advancements. It is well established in China and strives to expand its presence in the global market as well. The company also establishes strategic partnerships with organizations such as IATA to boost digital transformation throughout the aviation industry. Furthermore, it focuses on ensuring customer satisfaction and consumer value by providing innovative products.
SAP is focused on expanding its regional presence and the strategic acquisition of start-up companies. SAP invests in the research and development of intelligent systems, cloud platforms, data management, and intelligent cloud suite to gain a larger market share.
SITA focuses on reducing costs and increasing efficiency to maintain its position in the market and attract more customers. Through developments and innovations in cybersecurity, disruption management, identity management, airport connectivity, and bag tracking the company aims at addressing the pressing issues faced by the aviation industry. SITA is also focused on improving passenger experience and operational efficiencies through collaborations with different airlines, air traffic management organizations, and air navigation service providers.
Amadeus has been focused on the R&D of innovative products and solutions. The company engages in partnerships and collaborations with airports across the globe to increase its global presence, especially in Asia and the Middle East. In addition, Amadeus aims at reducing the risks associated with exchange rate fluctuations as it deals in the currencies of the US, the UK, India, Australia, and Sweden.
Although the leading players, as mentioned above, are dominating the market due to their vast industry experience, wide service offering, and geographic reach, other companies are actively contributing to the market. These players may strengthen their presence worldwide through new product/service innovations during the forecast period. Vendors with access to better technologies can develop unique and innovative products and services, which could render the competitors’ offerings obsolete. The competitive environment in the market is likely to intensify further due to the increasing number of new product developments, business expansions, and mergers & acquisitions.